Newark Housing Authority Launches the Rental Assistance Demonstration Program
The Newark Housing Authority has launched the application process for Rental Assistance Demonstration with an informational meeting at the July 18th Newark Housing Authority Resident Advisory Board meeting.
NHA Executive Director Victor Cirilo addressed the resident advisory board on the RAD program.
With federal approval for RAD conversion, the Newark Housing Authority will have the financing resources to complete much needed repairs and renovations to NHA housing complexes and individual housing units across the NHA properties. The Federal government has underfunded the nation’s public housing system through funding reductions and funding stagnation for years. The future of Housing and Urban Development funding is even more grim with an expected 50% reduction in the coming year. It is imperative that the nation’s housing authorities are proactive in securing the needed capital to secure housing for low income persons and families in its communities. Fortunately, the Rental Assistance Demonstration program offers the Newark Housing Authority an opportunity to secure affordable, safe and quality housing for Newark residents by converting from the traditional public housing program into the Section 8 Project Based funding source. The ultimate objective is to mitigate the threat of crumbling infrastructure, building closures, and reductions in the quality of life of our residents.
Danny Bosques-Gonzalez answers resident advisory board questions on RAD program.
The RAD application process includes a comprehensive communications program consisting of at least two meetings at each housing complex, a written record of each question posed by residents with formal written responses to those questions returned. RAD team members will be present at each meeting to explain the Rental Assistance Demonstration program and to answer any and all resident questions. Translators will be on hand where needed to assist with those who require it.
In addition to resident meetings, and to support open and honest dialogue between residents and the RAD program team, detailed information will be available on the NHA website. A dedicated RAD section is currently under development. Additional information will be shared via Facebook and Twitter. It is recommended that residents Friend NHA on Facebook and Follow NHA on Twitter by following these links or clicking the social media icons on the home page. Informational broadcast programming, streaming media, RAD newsletters and digital news blasts, and community events will also be utilized to share the opportunities available to Newark Housing Authority residents and to answer any questions or concerns raised by the RAD opportunity.
Sign up for the Digital edition of the A Future For All the RAD digital newsletter by emailing, email@example.com. The first edition will be emailed this fall.
What is (RAD) Rental Assistance Demonstration?
RAD was created in order to give public housing authorities (PHAs) a powerful tool to preserve and improve public housing properties and address the $26 billion dollar nationwide backlog of deferred maintenance.
About RAD Public Housing
In 2012, Congress authorized the Rental Assistance Demonstration (RAD) to test a new way of meeting the large and growing capital improvement needs of the nation’s aging public housing stock, as well as to preserve projects funded under HUD's “legacy” programs (Rental Supplement, Rental Assistance Payment, and Moderate Rehabilitation). Properties “convert” their assistance to long-term, project-based Section 8 contracts. These new contracts provide a more reliable source of operating subsidy that allow PHAs and owners to safely leverage private capital – typically debt and equity – in order to finance the property rehabilitation or replacement. The contracts as well as underlying use restrictions must be renewed each time they expire, ensuring the long-term affordability of the improved properties.
Current and future residents are provided a robust set of rights and protections, including the consultation during the conversion process, the right to return to the property when repairs are completed, the right to organize and funding for organizing, and a right to move with tenant-based assistance if needed to move closer to a job, school, family, or other reason. Further, HUD requires that a public or non-profit entity must always maintain a controlling interest in the property, even in the rare and unanticipated event of foreclosure, thus ensuring the long-term public stewardship of the properties. Learn more at https://www.hud.gov/RAD/program-details
Five Important Things You Should Know About RAD Public Housing Conversions
1. RAD allows public housing agencies to leverage public and private debt and equity in order to reinvest in the public housing stock. This is critical given the 25.6 billion dollar backlog of public housing capital improvements.
2. In RAD, units move to a Section 8 platform with a long-term contract that, by law, must be renewed. This ensures that the units remain permanently affordable to low-income households.
3. Residents continue to pay 30% of their income towards the rent and they maintain the same basic rights as they possess in the public housing program.
4. RAD maintains the public stewardship of the converted property through clear rules on ongoing ownership and use.
5. The RAD program is cost-neutral and does not increase HUD's budget. This program simply shifts units from the Public Housing program to the Section 8 program so that providers may leverage the private capital markets to make capital improvements.
FREQUENTLY ASKED QUESTIONS
Check back to this site soon for more information about Rental Assistance Demonstration and a Future For All in Newark.